US1 Critical Minerals reports ongoing legal disputes over US rare earth tenements while advancing Tanzanian uranium exploration and securing $1.5 million in new capital.
- Legal proceedings underway to protect US rare earth tenements
- Limited uranium exploration in Tanzania due to wet season
- 2026 Mkuju Uranium Project exploration program planned
- Completed $1.5 million placement including Snow Lake Energy participation
- Board refreshed with two new non-executive directors
Legal Dispute Clouds US Rare Earth Project
US1 Critical Minerals Limited (ASX – USC) continues to grapple with a legal dispute involving its US rare earth elements project. The company has initiated Federal Court proceedings against Stephen Baghdadi and Dateline Resources Ltd to safeguard its interests in tenements held under an agreement with Apex USA Resources LLC. A court undertaking currently prevents any transfer or encumbrance of these tenements without prior notice, with a trial scheduled for April 2026 to resolve key issues.
Tanzanian Uranium Exploration Advances Post-Wet Season
In Tanzania, exploration activities were limited during the December quarter due to the wet season, which restricts access and operations. Nevertheless, US1 has been conducting technical reviews of its uranium tenements in the Mkuju Project area, maintaining optimism about the potential for roll-front style uranium mineralisation. The company plans a structured exploration program in 2026, including surface trenching and reverse circulation drilling, aiming to refine targets and better understand mineralisation geometry and grade distribution.
Corporate Developments and Capital Raising
US1 welcomed two new non-executive directors, Avi Geller and Mark Gray, bringing expertise in US capital markets and mining operations respectively. Meanwhile, former director Andrew Pedley stepped down. The company successfully raised $1.5 million through a placement to sophisticated investors, with Snow Lake Energy subscribing for $1 million. Proceeds are earmarked for advancing US projects, Tanzanian exploration, legal costs, and general working capital. Shareholders will vote on issuing free-attaching options linked to this placement and performance options for Mr Geller at an upcoming general meeting.
Ongoing Legal Action Against Public Defamation
US1 is also pursuing legal action against Andrew John Price for allegedly making false and damaging statements about the company on social media. The company asserts these statements have hindered its commercial opportunities and is seeking damages. A bank guarantee of $200,000 has been provided as security for potential costs, underscoring the seriousness with which the board views this matter.
Strategic Outlook and Financial Position
While discussions continue regarding potential acquisitions and the sale of Tanzanian uranium assets, no binding agreements have been reached. US1 remains focused on expanding its critical minerals portfolio within stable jurisdictions. The company ended the quarter with $1.838 million in cash, positioning it to fund upcoming exploration and corporate initiatives. Investors will be watching closely as the company balances legal challenges with its growth ambitions in critical mineral markets.
Bottom Line?
US1 Critical Minerals faces a pivotal 2026 as legal outcomes and exploration results will shape its path forward.
Questions in the middle?
- What impact will the April 2026 court trial have on US1’s US rare earth tenements?
- Will the 2026 Mkuju exploration program yield significant uranium discoveries?
- How will shareholder approval of options influence US1’s capital structure and incentives?